Blue Cross Blue Shield, Memorial Hermann squabbling over contract

Updated 8:13 am, Wednesday, June 5, 2013

Hundreds of thousands of Houston-area patients could have to find new doctors as a result of a threatened split between Blue Cross and Blue Shield of Texas and the Memorial Hermann Healthcare System.

Memorial Hermann's participation in Blue Cross provider networks will end July 1 unless the two can reach an agreement, Bert Marshall, the company's president, wrote in a post card that began arriving in mailboxes Monday. The two have been in contract negotiations for the past several months, Marshall wrote.

"We are disappointed that our longstanding relationship with Memorial Hermann may soon end," says a statement on Blue Cross' website. "It remains our desire to keep the health system as part of the BCBS of Texas provider network."

The statement said if an agreement can't be reached, Blue Cross Blue Shield's "priority will be to transition our members to other quality, in-network providers." It said Blue Cross Blue Shield's network of hospitals and physicians remains "strong."

The post card was mailed to comply with 30-day notice-of-termination requirements in the contract.

A Memorial Hermann statement said that the system wishes to maintain the relationship, but noted "it has worked very hard over the past years to create high quality, cost effective care" and said "any agreement must embrace our clinically integrated care structure and provide appropriate reimbursement for our services."

Blue Cross' statement said the company is focused on "keeping medical costs from spiraling out of control so we can keep premiums as reasonable as possible for our members."

"Changes in provider reimbursement rates do not change what we are paid," the statement said. "They only change what your employer pays - what you pay."